Andorra–European Union relations

• European Union
• Andorra

The lying between the EU Member States, France and Spain, Andorra is not part of the European Union. Andorra is linked to the EU through bilateral international treaties.

EU -Andorra relations

The relations between Andorra and the EU are mainly governed by three international treaties:

Currently found in Andorra instead a debate over the medium to membership in the Economic Area ( EEA) could result. In particular, the reigning from June 2009 to May 2011 Andorran Head of Government, the Social Democrat Jaume Bartumeu, spoke in favor of a further approximation of Andorra to the EU.

Euro

Andorra is not a member of the European Economic and Monetary Union. However, the euro is the lawful currency of Andorra since 2002 and the sole currency.

Until the introduction of the euro in France and Spain in 2002, the French franc and the Spanish peseta were de facto method of payment. Then they were like in France and Spain replaced by the euro.

Andorra has - in contrast to San Marino, Monaco and Vatican City - so far brought no own euro coins in circulation. Talks were held between Andorra and the European Union since 2004. A monetary agreement with the EU is finished, and Andorra may coin 2013 own coins as from 1 July.

Tax policy

Due to its non- membership in the European Union, Andorra is known as a tax haven. There is neither income tax nor inheritance tax. Corporate taxes and VAT were not introduced until the end of 2005. It amounts to four per cent on most goods and services. However, the results from the savings tax agreements above rules apply to EU citizens with accounts in Andorra.

Andorra has committed in 2008 to take over the OECD standards on transparency and effective exchange of information in tax matters. The OECD has therefore decided to Andorra to delete from the " black list " of tax havens. An agreement to relax bank secrecy and anti-fraud strives to Andorra with the European Union. Andorra will also anchor a national level legislation to prevent illegal financial transactions and to comply with international standards.

Schengen

Andorra does not belong to the Schengen Agreement, made ​​with neighboring countries France and Spain intensive customs inspections. Andorran residence permit does not entitle the holder to transit through the Schengen States. Residence permit of the Schengen States authorize non-EU citizens to visit in Andorra; however, that no take up a job in Andorra is permitted.

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There is great interest on the Andorran side to further develop relations with the EU. Andorra currently being discussed membership in the European Economic Area (EEA), representing the EU member states, Liechtenstein, Iceland and Norway are. Prerequisite for inclusion in the EEA would be the previous membership in EFTA.

Although an application for EU membership is not on the agenda, but remains a political option. Andorra should ensure the conditions of accession, fully meet the Copenhagen criteria. Each EU member has particular have sufficient administrative capacity to adopt the EU acquis. The question of membership of a country the size of Andorra has not yet asked: Even Malta, the hitherto smallest EU member state, has more than four times the population of Andorra.